The regulation outlines an automated information exchange system between the Notary and the Tax Agency so that the public notary can identify legal entities with a revoked Tax Identification Number (NIF). You can check the status of your tax identification on the Tax Agency’s website by accessing the service “Consult by NIF (legal entities)” within the list of procedures for Forms 036 and 037. Census of Entrepreneurs, Professionals, and Withholders – Tax Registration Declaration for registration, modification, and de-registration, and simplified tax registration declaration.

Causes

Your NIF can be revoked when:

• After more than twelve months and three attempts, it has been impossible to notify the taxpayer at the tax address.

• The Corporate Tax return (Form 200) is not submitted for three consecutive tax periods.

• The company has been established but does not start economic activity, nor does it carry out preparatory actions for its actual exercise within three months of the application for the tax identification number, unless the impossibility of providing it is justified.

• The entity’s tax debts to the State Tax Administration are declared uncollectible in accordance with the provisions of the General Collection Regulation, approved by Royal Decree 939/2005, of July 29 (Article 119.1.a) of Law 27/2014).

• The entity has communicated (through tax registration declarations) to the Tax Administration the conduct of non-existent economic activities.

• It is found that the same capital has been used to establish multiple companies, so that, from the global consideration of all of them, it is inferred that the minimum capital contribution required by the applicable regulations has not been made.

• The entity has reported the conduct of economic activities, administrative management, or business direction at a fictitious or apparent address, without justifying the performance of such activities or actions at a different address.

Efects

The effects of the revocation of the NIF carried out in accordance with the provisions of Section 4 of the Sixth Additional Provision of Law 58/2003, General Tax Law (LGT), and Article 147 of the General Collection Regulation (RGAT), are:

1. Publication of the revocation in the Official State Gazette, which determines the loss of its validity for identification purposes in the tax field until the number is reinstated.

2. Inability to make registrations in the corresponding public register.

3. The notary’s abstention from authorizing any public instrument related to declarations of intent, legal acts involving consent, contracts, and legal transactions of any kind.

4.The entity holding the number will have the revocation noted in the registration certificates.

5. Inability to make charges and deposits in accounts or deposits opened in credit institutions.

6. Inability to obtain the certificate of being up to date with tax obligations.

7. Deregistration from the Intra-Community Operators Register (ROI) and the Monthly Refund Register (REDEME).

Rehabilitation

The revocation of the NIF does not have to be irreversible. If the circumstances that caused the revocation disappear, the NIF can be reinstated. To do so, and in accordance with Article 147.8 of Royal Decree 1065/2007, of July 27, the entity must request it from the AEAT, proving that the reasons for the revocation have disappeared. Additionally, in the case of companies, they must identify those who hold the capital of the company, its legal representatives, its tax address, as well as provide documentation proving the economic activity the company will carry out.

The fact that the company’s NIF has been revoked does not mean that the Tax Administration cannot require it to fulfill its pending tax obligations; in fact, it is already doing so. In this case, the acceptance of self-assessments, declarations, communications, or documents containing a revoked tax identification number will be conditioned upon its reinstatement.

Regulation of the Auditing Law

Remember, in addition, that these measures are complemented, as we mentioned in previous communications, with those introduced in the new Regulation of the Auditing Law (Royal Decree 2/2021, of January 12), which, since February 1, includes a new sanctioning regime for those who do not submit their annual accounts. According to estimates from the Mercantile Registers, there are more than 1.5 million “zombie companies,” including those carrying debts that make them unviable.

These inactive companies seek public funding, but they do not generate wealth or employment for the country. The administration understands that this is a perfect model for money laundering, concealment of real owners, and the diversion of funds.

According to the new Regulation of the Auditing Law, the mercantile registrars are responsible for providing the files with the non-compliance records, the Institute of Accounting and Auditing (ICAC) will impose the sanctions, and the Tax Agency (AEAT) will collect the fines imposed on those who fail to comply.

From now on, “the only procedures that inactive companies will be able to carry out will be those required to re-register and include their business again in the IAE,” in addition to regularizing their situation with the Tax Agency “and paying the corresponding fines imposed for each year the entity has not submitted its Corporate Tax return and annual accounts.”

Being an inactive company and failing to submit the Corporate Tax return or report your annual accounts results in a penalty. The amount of this penalty amounts to 200 euros for each year of delay. However, if in any given year the declaration resulted in a payable amount, the company owner will have to pay the Tax Agency to regularize their situation, which is at least 50% of the amount left to be paid, plus interest.